tv Power Lunch CNBC September 24, 2012 1:00pm-2:00pm EDT
$5 million number does not include pre-orders for the phone that didn't ship. so perhaps the numbers will in fact be higher than that 5 million unit number that was out there. take a look at apple shares. still down about 2%. that's it for us. "fast" at 5:00. follow me on twitter. "power" begins now. >> halftime is over and "power lunch" and the second half of the trading day start right now. >> indeed it does. thank you, scott. technology turmoil. three major companies, three major problems. for yahoo! it's the direction. for facebook it's new fears and threats regarding privacy, and then, of course, there is apple. there has been some sort of disturbance at the factory of a major apple supplier in china. there have been problems with foxconn before, and now they have broiled back up to the surface. is it a case of a few rotten apples or not? we'll look at that. also today, million dollar foreclosures on million dollar
homes. foreclosing on the rich and famous. you'll want to hear these stories certainly but first ty is down at the nyse. >> welcome, everybody, to "power lunch." we'll start with what really has become the talk of the internet today. let's take a look at a picture from the "new york times" website right now. that is a shattered guard booth at a foxconn plant in taiwan, china. workers there involved in a disturbance and the plant reportedly closed. the foxconn plant there builds a lot of high-tech gear. we're not exactly sure who was fighting whom, but one reporter in the "new york times" says workers were battling with security guards there. not the first time there have been disgruntled workers at foxconn, and it's another sign of increasing labor tensions over in china. now, the fight basically turned into a riot involving 1,000,
maybe as many as 2,000 workers. 5,000 police officers were reportedly called in to stop it all. now foxconn as i just mentioned, a major supplier for some of the best known and most profitable tech companies the world over, including apple, including hewlett-packard, dell and microsoft. now, this particular plant makes iphone 4s, but apparently not the iphone 5. that one is made in a plant, we understand, in chengdu. it's worth noting that apple shares are up 70% in a year, but they are a little bit lower, down by 2% today at 685.76. brian player is a supply chain expert and has been speaking to suppliers all morning to see the impact on foxconn and suppliers. and brian is with wedge partners. also with us is spencer antay from the "wall street journal."
brian, you have been to foxconn. i don't know whether you've seen this particular plant. what are the working conditions like over there? >> you know, they live in a very large kind of a miniature city-like environment. in shenzhen where i have been, they have about 500,000 employees in kind of a walled city so what you have is very large factories that are right next to dormitories, that are right next to cafeterias, where the workers generally live and can come and go but most their lives take place inside these factories. >> brian, you report that this is not a factory where we think the iphone 5 is being made, but apparently some of the iphone 4s are made there. is this disturbance likely to affect the supply chain of apple and the iphone around the world in any measurable, meaningful way? >> i don't think so. as we've said and one of my co-workers have been saying all morning, we understand that this factory used to make the iphone-3-gs, and in august we play they began making the
iphone 4 and iphone 4s. that's a very small part of apple's overall units. we understand this factory in taiyuan makes a small percentage of iphone 3s and iphone 4s. don't make the ipad and don't believe they are the factory that will be making the forthcoming ipad mini. we don't expect a disruption from apple in regards to these riots. >> spencer, this is not the first time that foxconn has been in the news because of unrest. worker suicides associated with the working conditions as well. tim cook worked to address that raising pay a little bit, we understand. what does he have to do now to address this situation that's developing and continuing at foxconn? >> right. it's important it point out we don't exactly know what the cause of the riot is. there's an investigation going on and we'll probably soon learn the results of this. tim cook is taking these labor issues very seriously.
it's somewhat of a contrast as to how steve jobs approached t.tim cook actually released a letter to the employees of apple telling them we care about every worker in our supply chain. you know, they have launched an internal investigation of their supply chain and of the foxconn factories. they have joined the fair labor association, and they have -- they have released some of the findings of those you had a its. making some progress on some of those issues. >> right. >> foxconn did say they raised the salaries of some of the workers about, 16%, but i think what this riot shows is that there's a lot more work to be done on the issue. >> it's difficult, is it not, for mr. cook as well, and because apple's culture is to so closely control the conditions under which its products are made, the conditions under which it functions. >> that's correct. >> its corporate culture, but it's very difficult to control anything that goes on in china, if you can at all. >> that's correct, sue, but the way apple handles that is by saying, if you violate any of
these rules, if you violate these standards, then that's grounds for removal in terms of working with applen. as was pointed out earlier the overall working conditions have been improving which is affecting foxconn's bottom line. by paying workers higher salaries, falling not as much in line and the overall conditions have been improving, and i think apple can exert their influence by basically making sure they are following these rules or they can cut them off. >> as shown they don't make much of the apple phone product there but they do make dell noekts, hp noekts and electronics that go into automobiles. >> right. >> could that supply chain, spencer, be disrupted? >> absolutely. the chances of having a disruption in a supply chain or
not, an apple-only issue. the reason it's affecting apple more is, one, obviously apple is the most valuable company in the world. it's producing more devices than -- than any company in the technology industry right now, an even though the conditions have been improving, you have to remember that this is very grueling, difficult, stressful work. there was an interesting report out of a chinese newspaper just recently before the riot. they sent a reporter in undercover to one of the factories where the iphone 5 was being made, and the reporter basically, you know, revealed this -- this situation where they are working all night long. they don't get to take really that many breaks. >> right. >> they get yelled at frequently. the conditions are dirty. there's bed before bugs, cockroaches, you know, so it's hard to sort of get down to that level on the factory floor. it's going to take time. >> i would disagree with that. we have bedbugs here in new york
city that are places that are very clean. the factories i've seen inside of foxconn were very clear. people wear all-white uniforms to make sure things are clean. people stand and do simple assembly all day long and getsman thenous. a lot of factory jobs are like that in the united states. that's the nature of a factory. >> one final question, if i might. how long does your intelligence indicate that this plant may be offline? >> that's the critical question. they were saying it could be up as soon as tomorrow. i actually think we've not heard the end of this news. i think we'll see more bad news regarding nurse which could theoretically keep this factory closed for up to a week or maybe more if we end up seeing deaths. >> gentlemen, thank you very much. appreciate you being with us. >> ty, as you know, another big apple story today, the company selling more of its 5 million iphone 5s in the first three days after that product was launched. a note from jpmorgan says, by the way, that that does not
include pre-orders, and then there's yahoo!. the shares of yahoo! today are on the upside by more than 5% in a month as the new ceo, marisa mayer, gets set to address the troops tomorrow. jon fortt is helping us get ahead of this particular story. >> tomorrow's meeting is only for employees, not inviting the media, not asking direct questions but we're still trying to glean whatever details we can. a big presentation that lays out her vision for what's important at yahoo!. i'm not sure we'll get a clear answer to that eternal what is yahoo! question? i'm told that that question is a bit of a trap. we should get a look at what is viewed as the top priorities. the home page top on the list. expect cutbacks on ad and maybe home page content to improve the user experience. another key area is search. microsoft holds the back end but
we'll see how much meyer thinks she can do to regain the front-end experience. >> search share is down to 12.8% in august, three points less than microsoft and way, way behind google. a week from today another meeting will focus on processes and goals, the practical side of how yahoo! will execute that vision. ityler. >> jon, thanks very much. let's turn to facebook, the other third company in our trio of tech companies in the spotlight. for a company that may live or die on its ability to get users to click on ads, new concerns being raised today over just how much information facebook may be getting every time you click on one of those ads. specifically we're asking about a gadget that tracks what you buy and a facial recognition device that tracks your face. julia boorntsin covers facebook for us, and let's start with the ad tracking. julia, it is no surprise to me whatsoever that facebook learned
something about me if i choose to click on an ad, for chevrolet or heinz ketchup or whatever. what is it that should surprise me though in what they are learning about me? >> here's the thing. it's not a gadget. facebook has partnered with a company called data logics to deliver information about how facebook ads drive actual in-store purchases. now facebook works with a number of partners like nielsen and comscore to better understand its advertising and facebook is under pressure to show that its rtis works. so the thing did data logics is it's sort of tracking how users behave in store. to address some of the concerns facebook sent me a statement saying that they don't sell any personal information, personal information from facebook that's not share. they say they have taken great care to measure the effectiveness of facebook ads without comp mying the commitments that we've made on privacy, adding that they don't sell personal information, and
individual user data is not shared between facebook, data logics or advertisers. the think we have to remember here, tyler, facebook is in a position to balance its users needs and the fact that they need their privacy protected with the fact that that data about their users is very valuable for advertisers, but as to whether this data is actually invading any privacy concerns, someone described it toe-to-me that you can turn pork into bacon but not bacon back in pork. by the time advertisers get the data esit's been sliced and diced so many times, there's no personal information that can be tied back to the use sdwrers so bottom line is that facebook is trying to prove or demonstrate that the ads are actually leading to purchases in stores. have i got that right? >> exactly, exactly. facebook is trying to prove a number of things. they are trying to show that clicking on ads is leading to purchases online, and with come new data logics that are trying to show that it heads to in-store purposes.
>> we'll check back with you a little bit later with more things having to do with facebook. let's move to jackie d'angelis and a market flash. >> i'm watching the chart, not a pretty chart for facebook today. down more than $2, more than 9% on the day and, of course, session lows for that stock. the bear ron's negative cover on it saying it's overpriced despite the 40% drop, and the issuer, of course, according to mobile is how do they monetize it? and looking at the long term they say we could be headed mid-teens so keep an eye on that one. sue? >> thanks. a ceo who has found a new way to boost revenue, litigation and it's working incredibly well. one of the big military drills is under way overseas. see what the navy is practicing it do and why. and a big night for "mad
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welcome back to "power lunch." rick santelli here on the floor of the cme group. lots of dynamics going on that represent movement in mortgages and inflation expectations, but really the proactive mover is the treasury. look at a one-month chart of ten-year. can you see we almost tested 190. we're easing back down, so it's
affected everything from the break-evens on ten-year spreads where the movement in t.i.p.s has been moderate. it's all the ten-year. rates trying to come back down to pre-statement and the dollar index is the one area you want to concentrate on and even ones on this chart, it's clearly been moving lighter. the slight reprieve that we've had in commodities is giving pause a bit so a big selloff in the index. tyler, back to you. >> thanks. the home builder linar beat expectations for the third month. in the past year it's almost tripled. it's up by almost 175%. diana olick is in washington with the details on that very cheery report. >> reporter: lennar's q3 numbers came in better than expected. net earnings quadrupled from a year ago, revenue up $128
million and new orders 27% and new orders 44%. they site low mortgage rates and low prices and an extremely favorable rent-to-own comparison. lennar stock up 176% from a year ago. why are some of the analysts not so bullish on the prospects. well, raymond shares says we're pricing in recovery and earnings that we're not likely going to achieve until 2016. yes, we're at the bottom, but there are still major headwinds, especially for first-time home buyers. citi has an underperform saying the traders are building at a 60% premium and everyone is chasing them. no question now the builder stocks are on a tear. on average shares of the home builder have trip will, tripled since the 2009 trompt the concern though is that this exuberance is because we see big percentage jumps in new orders,
but we forget just how far we fell. we are still well below the historical average on housing starts. ty? >> diana, thanks very much. now to the politics of the fiscal cliff. that set of tax increases and spending cuts looming at end of the year. while a headline-grabbing survey last week said the cliff is a big worry for investors, for the political parties there may actually be something to gain by going over it. eamon jafers is here with an explanation. >> when they designed the fiscal cliff last year, lawmakers here in washington design it had to be so awful and terrible and bad that nobody in their right mind would want to go over it. well, it won't surprise you, or maybe it will, to learn that here in washington some folks are reconsidering that and thinking about the political advantages that could come to going over the fiscal cliff early in the next year. that increase in taxes and decrease of spending might give political advantage to one party or the other. let me run through some of the
scenarios by which they are thinking about this, starting with grover norquist. he's the anti-tax crusader who has gotten a lot of republicans to agree to a no new tax increase pledge. if you go over the fiscal cliff, that would allow republicans to vote for a retroactive decrease in taxes that would get you past grover norquist's pledge because they would not have voted to increase taxes, even though taxes would end up higher after than before, if you can follow that logic. also, using the market turmoil to negotiate, that gives you leverage. if there's a big reaction on wall street, that gives folks here in washington some leverage they think might bring the opposite side to the table. and then deciding that austerity will work. there are some republicans in town who believe fundamentally we need to take this tough medicine and take it right now and then, of course in, washington, as always, there's placing blame, and after an election year that's been very, very partisan and bitter there might be a lot of folks in washington looking forward to a new opportunity in january to
start placing blame all over again. sue. >> thank you very much. news reports from iran today, quote, a top general in iran's islamic revolutionary guard corps as saying they might launch a preemptive attack against israel. iran's president ahmadinejad is now in new york where he'll speak at the united nations on wednesday. the u.n. general assembly is in new york this week. today not far from the coast of iran, the united states and 33 other nations held the largest military drill in that part of the world ever. the goal is to clear away sea mines that might be set down by iran in a future war. despite calls for calm from the obama administration, the situation is also getting quite a bit hotter in the east china sea. four chinese ships moved into what japan considers its territorial waters today. the japanese government immediately filed an official protest. the chinese ships quickly exited the disputed waterway. last week you might recall we first told you about the fight between japan and china over islands and fishing rights in
that particular area. ty? >> all right, sue. just heard diana's report on home builders. huge numbers from lennar and now one wall street firm is saying hold your horses. they are not alone. wednesday on cbs, don't forget we've got an exclusive interview with the ceo. we'll give you his answers to your questions on wednesday. we'll be right back after this. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen.
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welcome back, everybody. time for analyze this with matt cheslock. patience is a virtue. analysts are saying estimates are consistently below consensus. we do not believe "x," steel, merits a sell because of our positive free cash flow outlook, the company's exposure to stronger energy markets as well. do you buy this one? >> you know? i would agree with this one right now on the fact that the global demand picture is so weak. i'll buy it here, what they say. their peers are a lot weaker. would i buy this one if i'm going to buy any of them. >> note down 34% just in the past six months.
fbn securities, downgrading bieser homes, and ryland group. we believe the home building sector is in a mini bubble after the s&p home building index jumped 169% from the october lows. polti stocks surging 79%, what do you say here and agree with this call? >> that's maybe on a contrarian play. everybody is on the home builder band wagon. numbers through the roof. the case-shiller index tomorrow will be a huge number as far as home numbers go. don't believe the numbers have hit the bottom so it might be a time to take a little bit of money off the table. as we get to year end, money managers will will be in some gains in a sector with unbelievable performance going forward. >> matt cheslock, thanks very much. sue, back to you. >> greece's credit problems may be getting worse and fast.
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gold prices closing right now. brian schactman is tracking the action. >> everyone is talking buy the dips, buy the dips. the question is how far is a dip before you get in? a little bit of cat and mouse going on down in the pits. down today. obviously a little bit of a stronger dollar. profit-taking coming off of those six and a half month highs. rbc pointed out, open interest at record highs. speculative money tends to be long in gold. another from barclays says they see $810 in q4 and see it above average for 2013. better than the dow and worse than all the other major stock indices and the rest of the metals complex, everything to the downside. palladium the worst of the bunch. was down 5%. at one point global growth fears
seen in the copper, down 1.5% and that's really the order of the day. global growth is the fear. ty, back to you. >> all right. thank you very much, brian. let's get some trading action from the floor of the new york stock exchange. court any reagan fresh off vacation joins me from the floor. i've got sort of a prefacing question here. it's that morgan stanley's adam parker noted today on qe3 that more is required. he says qe3 will likely be insufficient to significantly boost equity markets, and that he would not be at all surprised to see the fed dramatically augment this program before year end. does this mean that the -- that stocks are addicted, on steroids to qe3? >> a lot of traders said they look forward to the stimulus programs. we're addicted to it. you can see it in the some movement but then it fades and
continues to fade. rally shorter and shorter as time goes on. traders in the market are very smart and know there are bigger problems at play, and that's why i think you see some of these defending sectors doing better. >> the market move was all front-loaded in anticipation that bernanke would do what he said he's going to do and now he's doing it and it's sort of a classic sell the news. >> exactly. very well can be, and today we've got a couple of 52-week high moves, pfizer, novartis, american, electric power, some of the names they have got. pretty strong dividend yields, defensive plays. seeing 52-week highs in a down market. some investors say any whiffs of question will bring change. we feel good for a little while, but it doesn't solve everything. >> now to the nasdaq and what
seema modi has been following. >> hey, tyler, selling an i5 phone don't seem to be impressive enough on the streets. apple underperforming the major indices. we're seeing goingp on pace to close at a historic high. google outperformed apple by over ten percentage points just this past quarter. the question on the street, do you book profits or can the stock move higher? keep it here on cnbc and we'll get you the answer. want to highlight a couple of chip stocks moving lower. evercore cutting down 1.9. back over to you. >> the other big story, waiting for the next shoe in greece. michelle caruso-cabrera has more on that today. >> based on the following numbers, you might think things are going well in greece after the president of the ecb mario draghi announced plans to buy in like nations like greece. the yield on the greek ten-year is down more than 10%, still
pretty high around 19%. greece's foreign minister, he was supposed to be on "power lunch" today with us, but he cancelled just about two hours ago without telling us why. he's here in new york for the u.n. general assembly. sometimes meetings do pop up, but sometimes leaders just want it avoid questions. he's here because the prime minister of greece isn't coming to the u.n. meeting at all. he's got a lot to do at home because the news out today is that once again the europeans are waking up to greece needing more money. here are the headlines. troika left on friday. that's the eu, the imf and ecb. they go in and say greece, are you doing what you're supposed to be doing so you can keep getting money and they find out greece is not doing what they are supposed to be doing. the disagreement stems over cuts. 13.5 billion. when it comes to a deficit, greece has to raise money or cut spending to that tune. they haven't done it yet. add to that the "der spiegel" now reports they think the money greece is going to need is more like 20 billion through 2016.
remember, greece is under a program right now over the next two or three years. greece completely denies that they are going to need that amount of money, but with this one, i'm siding on "der spiegel" because it really actually doesn't take that much analysis to look at the assumptions that were built in to how much money greece would need. they were assuming greece would be out of recession by next year. that looks unlikely. so where's the money going to come from? there are only three choices. imf unlikely to give more. they have all kinds of rules about how much exposure they can have in concentration to certain countries, so they are probably out of the picture so that means the other european partners or the ecb which is essentially the european partners. we keep hearing from france they absolutely want greece to have more time. more time means more money. >> exactly. >> so where is it going to come from, that's the question? >> michelle, thank you very much. >> thanks. >> let's look at tivo shares.
up almost 9% earlier this morning currently up just under 4% after verizon agreed to pay more than $250 million to tivo to settle a patent dispute. verizon was accused of illegally using tivo's time-warping technology in the video agreement. joining me is their president and chief executive officer tom rogers. welcome. >> good to be here since we were here at the beginning. >> indeed, indeed. break down this particular settlement for me. how much is verizon going to give you up front, and how does it break down over the next couple of years? >> 250 million settlement, and they will pay us $100 millover and this represents another major win for us on the patent front. you guys covered the smartphone, intellectual property front a lot, on the tv front in terms of patents, tivo's been the story. we've had major settlements with
dish, at&t and now verizon and the aggregate totaling over $1 billion in settlement proceeds so we feel very good about the strength of our intellectual property, and when we need to endorse, it we will. >> there's still litigation pending with motorola and time warner. do you feel that this particular settlement with verizon gives those other two companies a chance to settle before this ends up in court. >> when you're taking on major players like we've had with the size of settlement, we think the property arm is solid. at&t and motorola use tivo for their box systems. >> a number of analysts on the
street came out with positive comments. the stock urged almost 10%, but there were other analysts on the street who said basically this is the way that tivo is able to grow its revenues is through aggressively pursuing patent violations and that they want to see more in terms of innovation and other parts of the company. what's your response to that? >> the intellectual property of one piece of a multi-facetted operational strategy we've had which has been quite successful. those add-on lists have to recognize that tivo has become the leader world wide in the advancement of the cable industry. whether you're looking in new york or the areas where virgin media just hit a million subs with tivo. we're doing remarkably well as the lerds in providing a full range of advanced television services to the cable industry.
>> i think they are probably looking at the six-month decline in the stock of 18%, despite the fact that the stock had a very good pop in today's trading. suck to me about the initiatives that you have on the board right now in the minute that we have left now. the situation with verizon, is there still some sort of collaboration that tivo was going to take place with verizon. >> indicated we'll explore certain things with them, the red box movie service that they indicated they would serve and to the other question what else do we have going? on the consumer product front we've taken a giant leap forward with the introduction of a product called tivo stream which for the first time allows cable subscribers to take the recordings, the stuff they most care about watching, and getting it to their ipad, either to watch somewhere else in their home, to take it on a plane or
trip. got phenom that wienal numbers d then there's the question of what's going on in the marketing arono? and our set box top data, allows advertisers and agencies and net wrks to come up with ways to vastly improve productivity, the overall marketing expenditures, is a growing area for us where we think we can make an eager impact. >> tom, thanks for joining us. >> thank for having me. no secret here. college tuition is on the rise. it's already incredibly expensive, and with the fiscal cliff looming, things could get a lot worse and fast. after the break, the best way to save and protection yours and your kids. today on the "closing bell," meredith whitney, founder and ceo of meredith whitney adviser
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welcome back to "power lunch," everybody. let's see what's coming up on "street signs." >> coming up at the top of the house, is what is good for home builders bad for houseing? plus, we're charged up over the chevy volt. 175 miles per hour just does not matter. the former vice chairman of gm joins us with his take. munchy mondays. what was voted america's favorite salty snack. sure you've got an idea. back two guys on plunch. >> the networks of nbc once again bringing you education nation. our in-depth look at the nations facing teaching and learning today. and for many families it's more about the money and the best way to share for school. sharon epperson has some ideas. hi, sharon. >> reporter: a lot of people are worried about the fiscal life. the clock is ticking on tax
rules that could change the ways you can invest in a child's education. under the current law, the amount of money you can give away without getting hit with taxes is $5 million. take advantage of a lifetime exemption that will ensure you avoid a huge tax hit in the laws change. if the current law expires, that $5 million is going to trip to $1 million in the new years. whether it stays the same, can you always make up to a gift of 14,000 a child and singles can give the fee. you can also make a lump sum of five years of annual gifts in a single year, up to $65,000 per child and $130 per couple without being taxed.
as you can put this money in a 529 plan which is designed to help you raise money solely to pay for college costs. >> many parents and grant parent don't realize there's no limit horgift taxes when you by the college tail. >> that is, a if you can afford to. >> i was taking notes, my dear, copious notes. thanks, sharon some new data indicates the housing market could be on its way to recovery. robert frank joins us with the details. that's an encouraging sign. >> don't usually hear the words mansion and estates on the same way. foreclosures of properties priced $1 million or more have slipped to around 1,500 a month. that's down from almost 5,000 at the start of 2011. stock markets run, wealthy homeowners are doing better
financially but sales at the high end have also been strong. some economists worn foreclosures could start to rise again because credit is very difficult for the large jim bock mortgages at high end. we did a little shopping for foreclosed man shans and we started. this was featured on mtv "cribs" owned by an aerospace engineer, no pun intended, who fell on hard times. the second is just outside las vegas. look at this one. it went to foreclosure last year. priced for around $3 million. got a manmade river that cost $1 million to build. uses 120,000 gallons of water. money literally down the drain. sue? >> especially in the desert. i can't believe it. >> amazing what they build. >> tell us about the one that's going on the board thursday. thanks. ty, down to you. >> virginia, your neck of the
words. i grew up just next door but i'm not going to say how many high school reunion. apple selling a record 5 million iphone 5s, but well below what analysts expected. shares below $700. facebook under fire over two new privacy concerns. when you use it, are you in fear you're putting your privacy at stake.
i've been a superintendent for 30 some years at many different park service units across the united states. the only time i've ever had a break is when i was on maternity leave. i have retired from doing this one thing that i loved. now, i'm going to be able to have the time to explore something different. it's like another chapter.
let's give you the results of the yahoo! finance poll. facebook is under fire over two new privacy concerns. when you use it, do you feel you're putting your own privacy at stake? big turnout. almost 150,000 responses there. are the numbers. 16% say yes. privacy at risk. 68% say no. not at risk, and another 16% say yes, but all social media put you at risk. sue, a perfect bell curve there.
>> indeed it is. thanks, ty. power rundown time. jane wells is in the house and robert frank still with us. good to see you, miss jane. >> i'm going to try "gangnam style" but my daughter would kill. >> you yes, she would. apple sold out all of its 5 million phones over the weekend. new record. the street was disappointed though. wanted 8 million and apple had to clarify all the numbers. >> i don't understand it. when demand exceeds supply, that is a good problem for any company to have. >> yeah. >> whether they sold a zillion or katrillion. still exceeding demand here. it's a great problem most companies would die to have this issue. >> have you pre-ordered yours? >> aren't counting pre-orders. those phones won't be delivered until next week. the local apple store says they have sprint iphone 5s available. but i like bertha coombs excuse. the delivery people got lost because they were using the new
apple map out. >> touche. how will congress handle the dreaded fiscal cliff if the president wins re-election and if the congress stays the same? >> i'm going to quote lloyd blankfein says he's optimistic that they will come to some short-term agreement after the election and a compromise by halfway next year. i don't think i'm that optimistic unless you have one party controlling everything that you're going to get anything done and maybe -- maybe that's why people -- we had everyone in 2008, and in 2010. >> that's true. >> the house went back republican. maybe people like gridlock more than they say. >> congress has done one thing well, creating artificial deadlines and then to extend them. this shouldn't be called the fiscal cliff. should be called the fiscal bridge to nowhere. i think they will keep extending it. the easy thing to do. >> let's move on to potentially explosive situation for donald trump. it seems his planned $100 million golf course in the bronx, right over there, is leaking dangerous levels of
methane gas. you can't m one up, can you, jane? >> no. nowhere will you find more gas bags than on a golf course, but he has pulled victory from defeat before. bought the golf course on palisades where the 18th fell off the cliff and he just settled a lawsuit over being able to build luxury homes there. maybe that got him a little money, we don't know, to help fix this gas problem. >> what do you think, robert? >> the donald is an expert of turning negatives into positive marketing. this will be the ultimate golf course with sand traps, gas explosions and people will want to go there for the unexpected explosions. >> then it will become an nbc sitcom or nbc reality show. georges bank jane, you're with us all week. can't wait. >> yes, thanks. >> ty, down to you. keep talking golf because
tonight on a fresh brand new edition of "how i made my millions," a stroke of genius literally by a guy who was trying to become a better putter, simple as that. he named his company ping. the late founder of ping, one of the most famous names in golf, born in norway, wasn't much of a player, but he was a hell of an engineer. his first putter was not only revolutionary but gave his company its name. >> people said, listen to that ping, listen to that ping so what other name could i give it? so ping it is. >> the big break came when a touring pro won the phoenix open in 1967 using solheim's answer putter. in the '60s 7 million golfers took up the game and all needed clubs. sales took off. he became a wealthy man and
began a unique tradition, the gold room at ping. every ping pro who won a tournament received a gold-plated club, putters mostly and an identical club went into the gold root nearly 3,000 of them now. and, of course, maybe the most famous ping player these days, bubba watson, the masters champ. part of my visit to ping earlier this year was a fitting for clubs. did a lot of measuring and innovation. fortunately they didn't measure my waist. one thing they didn't have to measure. all goes back to the desire to make a better putter. see the whole story tonight at 9:00 p.m. eastern and pacific. interesting story, hundreds of millions. >> absolutely, and done it at a time when golf has been struggling a little bit to keep players because it takes a long time to play a full round of golf, and their company has been doing relatively well in attracting new i guess users is
the best word for t.new golfers. >> absolutely. and they make the point that it's really like having a tailored suit -- made-to-measure suit as opposed to off the rack suit. i think of the new clubs as the t.a.r.p. program, how much worse could it be if i didn't have the clubs is this. >> i get the attraction. still an incredibly frustrating game at times. >> and it takes, as you say, a long time to play. it is a relatively inexpensive game to take up, and in a soft economy it's one of the things that can go by the wayside. >> there's music. moving us on. >> just like the emmys. didn't win an emmy. wednesday on cnbc, we've got an interview with twitter ceo dick costolo. ask your question t to #asktwitter. be right back. now, that's what i call a test drive.
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